Maersk farm-in spurs Bagpuss well in North Sea

August 20, 2013

Offshore staff

TORONTO – Maersk Oil is in talks with North Sea Energy on farm-ins to two concessions in the Moray Firth in the UK North Sea.

Blocks 13/24c and 13/25, containing the Bagpuss and Blofeld prospects, were awarded as a promote license under the UK’s 27th licensing round. North Sea Energy (NSE) has a 40% interest, EnCounter Oil 40%, and Groliffe 20%.

Both prospects are on the Halibut Horst, a well-defined basement high in the Moray Firth, offshore northeast Scotland.

Under the farm-in agreement, Maersk would gain a 25% stake in the blocks. In exchange it would carry 100% of NSE’s costs, subject to a cap, for the initial Bagpuss exploration well, including a site survey. This could be drilled in 2014.

Maersk would also carry 50% of NSE’s costs, subject to a cap, on any subsequent appraisal well.

Encounter and Groliffe will also reduce their interests after agreeing to a deparate farm-out arrangement.

All the transactions are subject to the approval of the UK government and third-party consents.